Member Info for Juniormining

IrnHaggis, they own 33% so must have some clout particularly if they can get another 17% to agree with them.

As it stands with Redwood they have £50m min worth of shareholders to satisfy vs £2.5m with R8. If they give up more equity to Redwood it will be the minority that are disgruntled. You never know what sway government linked organisations have if they feel they are being done over.

IrnHaggis, If the terms of the RTO for Warrington Council are perceived as not being a good deal by either the public or the Government there may be pressure to give them better terms and further dilution for the existing R8 shareholders. Seems both relevant and a real risk.

Korda,

Seem strange that Redwood want to publicly announce their profits before the accounts have been filed with Companies House.

I wonder if Redwood will use these results to push for a greater % equity swap. Possibly target £100m of swap rather than £50m and dilute to existing R8/ Mode shareholders even further.

In theory Redwood is worth more now then when the deal was announced and also the announcement was a minimum of £50m so that could mean anything.

I use Interactive Investor.

I used to used Fidelity but found they restricted the companies I could invest in.

Crober33, they've been piloting new technology (not their technology) on land that they own for lithium extraction and the results could not be any better. Only a matter of time before they are bought, also massively under valued with a market cap of 23mil australian dollars and 15mil cash in the bank. If I could get my money back today from R8 it would go straight in here as I see the chance of getting a multi bagger much greater.

Not more waiting.

I'm hoping Mandrake Resources does not explode in price before this as the money will be going straight out of R8 and into there.

Revolut are work $25b vs Redwood £50m, could not see this being a partnership that Revolut would consider.

I think it is possible the reason Revolut do not have a banking licence is because they don't want one. If they get one they are open to more legislation which ultimately means they need to protect customers more and then comes at a cost. They seem to be able to operate just fine without the licence, I use Revolut for my business account and know it gives me no FSCS protection or fraud protection but needed to use them for another reason.

If I'm wrong and it turns into 20p it will be a 30x bagger for me, so hope I'm wrong. Just can't see a path to me not being right.

Stand corrected there was a post on the 14th September about the tweet and a suggestion of a RTO.

Buda_, the wishful thinking may make us some money yet. When it's relisted if there is enough blind optimism we may have a quick pump and dump scenario.

I'm trying to workout if people actually believe the 20p per share valuation that's been mentioned a few times on here or if they are just trying to pump and dump.

Trading off the rumours and volatility of the last suspension I've managed to be up about 300% on this investment. One thing that is guaranteed is when it re-opens it will definitely be a volatile share again.

Crober33, there were posts on here about companies house papers being signed by a mergers and acquisitions solicitor. The feeling on this forum was that they would be bought for the crypto licence, which if they were I'd have expected them to be bought for circa £5m.

Not once was a rumour of a reverse takeover mentioned, not once was Redwood Bank mentioned. It sounds like you predicted it but did not care to share it, any thoughts on the lottery numbers this week?

DJMTrading91

If Redwood do wish to acquire other lenders and loan books surely they'll need to dilute the company even further.

If they buy good quality loan books (which are rarely for sale as the junk is usually sold) this could be a good long term play but no quick increase that anyone is suggesting.

It seems like people are clutching at straws as to why this could be a multi bagger but people never think the whole ideas through.

Metrobank market cap today is £214m, not sure it's even worth 25% of Metrobank let alone multiple times the value.

You could even go as far as saying £50m equity swap is a bad deal, but that would assume Mode is worth something in the first place. We're being thrown a lifeline is what I think and we should be grateful for whatever we get.

Hope I'm wrong as I'm holding a decent amount of these, but think realism is required rather than optimism with this one.

DJMtrading91, you say "they both need the deal equally as much for different reasons".

I disagree R8/Mode need the deal and Redwood want the deal. If the deal falls through R8 will be wound up.

There is a huge different between wanting and needing something, hence why Redwood should be in the driving seat for any negotiations.

Crober23, agreed cost and time in listing has a value. I think this is the reason that Redwood will give up a small % of their equity on the basis that they will save cost and time.

With regard to the crypto licence, Redwood have not made any representations that it will be used. For all we know it licence may have expired or be sold, if they make use of this it is a bonus but I can't see that happening overnight when relisted.

I also think we need to look at this from a negotiation point of view:

1. Redwood are a bank that is surviving with or without a public listing, they want Mode to buy in exchange for no cash (just equity) as it is a cheap vehicle to get publicly listed. What are the consequences of the deal falling through, they don't get listed.

2. Mode are a failing business on the verge of liquidation, they want to buy Redwood to continue survival also so Jonathon Rowland saves a bit of face. What is the consequence of the deal not going through, no more Mode.

Now if you were either side of the table for the negotiation which party is in the stronger position to make demands. The only dynamic that changes this is Jonathon Rowland has a large share holding in each company, but not enough to make the decisions on his own.

Robinsond013, I expect it will be exactly that, then on the day of opening the market will decide which direction it travels.

Anything more than 2.25p means a bad deal for Redwood, don't think Redwood would sign off on a bad deal as they could just pay the extra money to get listed themselves.

Crober33, if you mean what is the share structure going to look like going forward. I'd imagine it may be a very last minute (just before listing) announcement so investors don't have time to analyse it too much. Jonathon Rowland seems to be a real slippery character when it comes to things like this.

Crober33, " what % are mode/r8 going to hold in Redwood" Mode are going to hold 100% of Redwood.

The issue with their assets going up 10X is they have no assets. 10X zero is still zero.

They'd need to swap £5m of equity and not £50m to achieve the speculations people are making. I'd love to be proved wrong but, the crypto licence does not add the value anyone has suggested.